Demand Curve

Amounts of goods/commodities to which consumers are willing to purchase as a function of its price. In economics, the demand curve is the graph depicting the relationship between the price of a certain commodity and the amount of it that consumers are willing and able to purchase at any given price. It is a graphic representation of a market demand schedule. The demand curve for all consumers together follows from the demand curve of every individual consumer: the individual demands at each price are added together, assuming independent decision-making. Demand curves generally have a negative gradient indicating the inverse relationship between quantity demanded and price. The explanation of negative demand curve is given by (i)The law of diminishing marginal utility, (ii)The income effect and (iii) The substitution effect.